Ex-JPMorgan Executive Macris Challenges London Whale Report

Oct. 21 (Bloomberg) -- Achilles Macris, a former JPMorgan
Chase & Co. executive in Europe, will appeal findings by the
U.K. markets watchdog that criticizes his actions after losses
caused by Bruno Iksil, the trader known as the London Whale.

Macris was “deprived of the opportunity of responding” to
the Financial Conduct Authority, a spokesman for his lawyers at
Clifford Chance LLP said in an e-mailed statement today. Macris,
who led the international Chief Investment Office, said the
findings from September were “made in error” and he will
challenge them in a U.K. tribunal.

The FCA’s “assertions fail to take proper account of the
actions he took and mischaracterize his dealings with the
Authority at the relevant time,” the spokesman, Michael
Osborne, said in the statement.

Jamie Dimon, the chief executive officer of the New York-based bank, characterized the $6.2 billion loss last year as
“the stupidest and most embarrassing situation I have ever been
a part of.” The bad bets led to an earnings restatement, a U.S.
Senate subcommittee hearing and $920 million in penalties from
regulators including the Securities and Exchange Commission and
the FCA.

In July 2012, JPMorgan said it would restate its first-quarter net revenue by $660 million because it wasn’t confident
that the valuations of the bank’s derivatives trades were
accurate.

‘Deliberately Misled’

The “conduct of CIO London management deliberately misled
the authority about the situation” according to the FCA’s
notice on the fine, which is published on the agency’s website.
Macris wasn’t mentioned by name in the FCA’s findings following
its investigation into Iksil, who was known as the London Whale
because the size of his bets.

Lara Joseph, a spokeswoman for the FCA, declined to
immediately comment. Brian Marchiony, a spokesman for JPMorgan,
declined to comment on Macris.

Iksil’s former boss, Javier Martin-Artajo, and junior
trader Julien Grout were indicted in the U.S. in September on
five charges each, including securities fraud and conspiracy,
for allegedly seeking to hide losses as they began to mount.
Prosecutors have said Iksil, who wasn’t charged, is cooperating
with them.

Martin-Artajo and Grout are not in the U.S. and haven’t
returned to face the charges.